CASE COMPANY

PICTURE 1. Case company leaflet in spring 2016.

Results were that three contacts have been made during two months (02.05.2016) through those 5000 copies. Company expectations were higher and they were disappointed for the result. It tells that the customers were not that interested or the leaflet was not either distributed in the right

area or the consumers who received the leaflet were not interested on buying the services. Also the time of the season when leaflet was distributed can also be wrong and therefore no conclusions should be made that the direct mail strategy could not work, if it would be

implemented effectively for the right consumers at the right time. Company has decided to not use direct mail before more effective strategy could be found. In addition, company also wanted to know how effective would it be to directly market services from door-to-door.

5.1 Competitors and industry

The construction industry is really competitive and there are several

companies who are operating in the field of construction. That is why case company is mainly concentrating on roofing’s. Sector is not that

competitive and most of the companies who are working in the same sector are not that experienced and relatively new.

As companies are operating at their sector there are few forces that are raising the competition. Those forces from the construction sector are presented next.

Since the case company is operating on the field of construction, substitute products and services can be taken out from the equation, because buildings cannot be built and renovated in any other method.

Threat of new entrants always exists, but the costs are really high if a company would like to enter in to the markets.

Bargaining power is created from the behalf of customers usually, because typical customer always chooses the service, which is the cheapest.

Especially when construction works are costing thousands of euros, cheapest available service attracts the customer.

Suppliers cannot create a competition in the sector mainly because few factories around Finland provide most of the supplied goods. They are not connected to the companies who are building and renovating in any other sense than just by being the retailers. It means that they are not owned or

controlled by construction companies. Therefore, prices are always staying same for every company who is buying the supplies goods from the

retailers.

So that the industry and sector could be understood better, similar but bigger direct competitors marketing efforts are benchmarked. In this case two companies who are operating at the same field, roofing’s, are

examined. Especially their marketing methods are looked.

5.1.1 Eliittikatot

Eliittikatot is a Finnish roofing company, which is operating around Finland.

Their operations are relatively around five times bigger if looking at the personnel and revenue (Kauppalehti 2015.) Their operations are similar compared to the case company, but the amount of marketing efforts they are using are larger.

Looking at their efforts used in marketing, it can be seen directly that there is a simple strategy and the customer satisfaction is their key. Website is clear to use and everything a customer could want from the website, can be found easily. By examining their operations in marketing, few things pop out. First being the magazine what is distributed for customers.

Eliittikatot has their own magazine, which is directed for the customers who have already used the services and for the ones who are interested.

In the magazine reader can find information about roofing’s and how the company works. Also some stories from existing works are published.

Magazine connects the customer with the company and the magazine is working as a direct marketing tool for them. It replaces the traditional direct mail leaflet and connects the consumer with the company and is also familiarizing the consumer to its operations. (Eliittikatot 2016.)

Other thing that they are using is sales personnel who are trained. They are constantly recruiting new sellers at their website and providing the recruits with a sales training. All in all, their marketing efforts are focusing on the sales and customer engagement.

5.1.2 Kattocenter

Kattocenter is also a Finnish Roofing company, which is operating around Finland, but mainly around southern part of Finland. Company is around eight times bigger by revenue and personnel (Kauppalehti 2015.)

Kattocenter is specialising in roofing’s and on jobs what the case company is working on also. Also Company is headquartered in Lahti and is a local competitor.

Their marketing efforts are mainly relying on the visibility. It can be seen around the city by their cars, which are covered in their advertisements.

Also they are using help center, which can be found from their website.

Customers can contact their professionals and seek for help on their problems. That way company can interact with potential customers and offer their services without them have to be making the initial contact.

Therefore, customers are feeling valuable because they are helped. Also the company does not have to use lot of resources in the action since the help center is mainly operating by call back system, which means that when professionals are not available, they are calling back whenever they have time. (Kattocenter 2016.)

Still company is not using that much marketing efforts and all the efforts are put on their website, which is clear and informative. Through their website the customer can easily find the information about all the works they are operating.

All in all, Company is using relatively few marketing methods and is putting their efforts on brand and the customer satisfaction. In a sense their

marketing efforts can be compared with the case company, since they are similarly relying on good relationships.